Exercise 14-1 (Algo) Common-Size Income Statement [LO14-1] A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes This Year $ 7,390,000 4,740,000 2,650,000 1,380,000 705,500 Last Year $ 5,616,400 3,515,500 2,100,900 1,078,000 2,085,500 564,500 103,000 $ 461,500 615,000 1,693,000 407,900 90,000 5 317,900 Members of the company's board of directors are surprised to see that net income increased by only $143,600 when sales increased by $1,773,600. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (ie., 0.1234 should be entered as 12.3).) This Year Last Year Sales Cost of goods sold % % % Gross margin 0.0 % 0.0 % Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses % % % % 00% 0.0 % Che